If I buy a second hand car can I transfer the previous owner’s insurance in my name? Will I get all benefits such as no claim bonus? Shashank Moitra

You can transfer the motor insurance policy of the previous owner to your name. You need to produce the Registration Certificate if the same has been transferred in your name or Form Number 29 and 30 to the insurance company for transferring motor insurance.

After producing the proof of sale, you need to share the No Objection Certificate from the previous owner to transfer the insurance under your name and pay the difference amount of No Claim Bonus (NCB) on pro-rata basis for the balance policy period, to the insurance company, along with the transfer charges.

The NCB is linked to the owner and not the car, hence you are not eligible for the NCB earned by the previous owner on the vehicle. However, the NCB of your previous car can be reserved through an NCB reservation letter obtained from your insurance company which is valid for a period of three years.

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So, in case you are selling a car whose insurance policy has an NCB on it, it would be advisable to take the benefit of NCB and pass it to the insurance policy of the vehicle that you are buying. You also need to keep in mind the fact that the NCB remains active on a policy only for up to 90 days, post expiry of the policy.